Table of contents
, IGCSE Business Studies Theory
by Shanice Tan
Sections :
1. Understanding business activity
2. People in business
3. Marketing
4. Operations management
5. Financial information and financial decisions
6. External influences on business issues
*Most information are from IGCSE official textbook
*Students that receive this is not allowed to refabricate or resell this
in any way
*No questions asked, only theories mentioned.
,chapter 1
, 1. Understanding business activity
Chapter 1 - Business activity
Business activity - process of producing goods and services to satisfy people’s
wants and needs
Needs - essential for survival eg. food
Wants - not essential but desired eg. designer clothes
4 factors of production
- Capital
- reward: interest
- Labour
- reward: wages
- Enterprise
- reward: profit
- land
- reward: rent
Cycle of business activity :
1. Limited resources
2. Unlimited wants
3. Economic problems
4. Scarcity
5. Choice
6. Leads to opportunity
Ways of increasing added value :
Increase price
- improve quality : adding features/ design
- improve reputation : recognizable packaging
- establish brand image : provide extra service
Reduce raw materials costs
- buy cheaper sources/ find cheaper suppliers/ buy in bulk to gain a discount
- lower the quality of inputs such as cheaper raw materials
- reduce the amount of inputs needed
Why businesses needs to grow
- Increase profits
- Benefit from economics of scale
, IGCSE Business Studies Theory
by Shanice Tan
Sections :
1. Understanding business activity
2. People in business
3. Marketing
4. Operations management
5. Financial information and financial decisions
6. External influences on business issues
*Most information are from IGCSE official textbook
*Students that receive this is not allowed to refabricate or resell this
in any way
*No questions asked, only theories mentioned.
,chapter 1
, 1. Understanding business activity
Chapter 1 - Business activity
Business activity - process of producing goods and services to satisfy people’s
wants and needs
Needs - essential for survival eg. food
Wants - not essential but desired eg. designer clothes
4 factors of production
- Capital
- reward: interest
- Labour
- reward: wages
- Enterprise
- reward: profit
- land
- reward: rent
Cycle of business activity :
1. Limited resources
2. Unlimited wants
3. Economic problems
4. Scarcity
5. Choice
6. Leads to opportunity
Ways of increasing added value :
Increase price
- improve quality : adding features/ design
- improve reputation : recognizable packaging
- establish brand image : provide extra service
Reduce raw materials costs
- buy cheaper sources/ find cheaper suppliers/ buy in bulk to gain a discount
- lower the quality of inputs such as cheaper raw materials
- reduce the amount of inputs needed
Why businesses needs to grow
- Increase profits
- Benefit from economics of scale
